250.888.7049 | This email address is being protected from spambots. You need JavaScript enabled to view it.

Top Victoria Real Estate Trends to Watch in 2018

Slower paced market, slower price rise

There’s been more than enough talk about the impending crash of Canadian real estate, but without some major outside economic shock, we aren’t expecting a catastrophic fall in 2018. What we will see is a reduction in volume to fewer than 100,000 unit sold province-wide, which will equate to a drop from 2017, but still above the ten-year average. Inventory constraints, higher mortgage qualifying requirements, rate volatility, and constrained economic growth are expected to drag prices lower nationally, but for Victoria we are still expecting modest single-digit price growth over the coming year.

Year of the Condo

Condo prices made huge gains in 2017. Because condos offer more accessible price points, and the appeal of a lower-maintenance lifestyle, we expect demand to remain high in 2018, with the resultant upward pressure on condo prices. Case in point: we had our last condo listing of 2017 under contract within a week, and it sold for over asking. Interested in capitalizing on the condo trend? Give us a call!

With a scarcity of developable land, and cranes dotting the downtown #YYJ skyline, it’s clear to see that developers are working to meet demand, and we are excited to see what some of the larger, master-planned communities such as Bayview and Dockside Green will have to offer residents as they continue to build out, reimagining the area west of the bridge with a new urban vibrancy.

Mortgage Rate Movement

With two rate hikes in 2017, the Bank of Canada finally began to shift away from the previous seven year cycle of historically low rates. This doesn’t necessarily mean that rates will make a straight shot up in the year ahead, as lenders typically cut their fixed rates to compete for business in the spring, and often push them up later in the year, closer to year-end. By and large, consumers should expect a little more rate volatility than has been the norm over the past few years.

Multi-family development taking centre stage

As alluded to above, the cost of financing and the cost of land are contributing to a reduction in the number of detached housing starts, as well, rising sale prices for attached homes and condo units have developers looking to multi-family property types to create new housing stock. With plenty of new townhouse and condo product coming up in Greater Victoria, watch for this trend to continue in 2018.

Return of the 30 year Mortgage

With the prospect of a one-two punch to consumers in the form of the higher stress test threshold and increasing rates, buyers will be seeking means to stay in the game. 30-year amortizations are still available to borrowers who have more than 20% down, and although the longer term incurs CMHC fees, it will likely be the difference in approval for many individuals, applying both to new mortgages and to those reaching the end of their terms and shopping for options at renewal.

Technology

Cutting-edge tech is nothing new in the real estate business, but as we here at YYJhome.ca position ourselves for this year and further into the future, we can see that the rise in mobility amongst our clientele - consumers’ need to have good information accessible anywhere as they navigate the property market - will dictate that we continue to provide faster, easier access to information on the go. Our interpretation, analysis, and contextualization of market data will be key to helping you maximize your opportunities. In addition, we anticipate leaning into our commitment to utilizing technology to showcase our property listings - particularly in the 3D virtual tour / VR space, a sector in the real estate industry we are expecting to see grow rapidly over the next decade.

How Will these Trends Affect YOU?

Want to talk to a well-regarded local real estate expert about how these trends - and others - may affect your particular situation? Send Dirk an email now and get the conversation started.

About YYJhome.ca

Committed to combining knowledge, trust, and technology to build a relationship and deliver a top-rate experience, helping you meet your real estate goals and build the life you want, right here in paradise.

Keep in Touch

Dirk VanderWal
  dirk (@) yyjhome.ca
  250.888.7049 mobile
  250.385.2033 office
  250.385.3763 fax
  Newport Realty
Christie's International Real Estate
1144 Fort St.
Victoria, BC V8V 3K8


Get Map

Latest News

20
Nov2018

Balancing the Emotional and Practical...

Imagine this scenario... You're shopping for a new home. You drive to visit a recent listing. As you...

07
Nov2018

Setting Your List Price Requires...

When you're having a garage sale, one of the toughest tasks is pricing your items. If you...

02
Nov2018

October 2018 Victoria BC Real...

The Victoria real estate market's return to balance not linear, but also not unexpected - A total of...

23
Oct2018

Boosting Your Curb Appeal

Ideally, you would like buyers to wait until they’ve viewed your whole property before they judge it....

09
Oct2018

What’s happening in the Victoria...

While the regularly released Real Estate Board statistics provide an immensely useful overview of the market on...

01
Oct2018

September 2018 Victoria BC Real...

Victoria Real Estate Market Continues to Stabilize - A total of 533 properties sold in the Victoria Real...

08
Sep2018

August 2018 Victoria BC Real...

Victoria's Real Estate Market Simmers at the End of Summer - A total of 594 properties sold in...

07
Aug2018

July 2018 Victoria BC Real...

Victoria Housing Market Still Finding Its Balance - A total of 651 properties sold in the Victoria Real...

05
Jul2018

June 2018 Victoria Real Estate...

Continued uncertainty brings predictable results for the Victoria real estate market - A total of 708 properties sold in...

02
Jun2018

May 2018 Victoria BC Real...

Price Pressure Continues on Lower-Priced Housing in the Capital Regional District - A total of 755 properties sold...

01
May2018

April 2018 Victoria BC Real...

Slower start to spring does not signal lower prices for Victoria real estate market - A total of 774...

03
Apr2018

March 2018 Victoria BC Real...

Outside Influences Impact Spring Real Estate Market in Victoria - A total of 688 properties sold in the Victoria...

04
Mar2018

2018 Expanded Foreign Buyer Tax...

By now, I’m sure you’ve read the headlines about #BCBudget2018, so I won’t go to pains to...

02
Mar2018

February 2018 Victoria BC Real...

Victoria Real Estate Market Adapts to Changing Policy Landscape - A total of 545 properties sold in the Victoria...

02
Feb2018

January 2018 Victoria BC Real...

Victoria Real Estate market begins the new year with low inventory and high demand - A total of 431...

19
Jan2018

GUEST BLOG: What's the Deal...

This week's blog post courtesy of Paul Macara, licensed broker with The Mortgage Group in Victoria -...

12
Jan2018

Top Victoria Real Estate Trends...

Slower paced market, slower price rise There’s been more than enough talk about the impending crash of Canadian...

03
Jan2018

2018 Victoria Real Estate Outlook

With the release of the last set of market stats from 2017, we’ve had a chance to...

03
Jan2018

December 2017 Victoria BC Real...

Victoria Real Estate Market Strong to the End of 2017 - A total of 462 properties sold in...

01
Dec2017

November 2017 Victoria BC Real...

Victoria Real Estate Market Experiences a Burst of Activity - A total of 671 properties sold in the...

«
»


Newport Realty

Christie's International Real Estate

REALTOR® MLS®